Methods for Registration of Mortgage of Chattels
Business people and lawyers have often complained of the vagueness and impracticalities of China's legal rules regulating the filing of charges over chattels. With the advent of the New Methods for Registration of Charges of Personal Properties, much light is shed and many problems removed; yet ambiguities still abide around several key issues.
Issue: February 2008
Promulgated: 10 February 2008
Keywords (click to search):
Personal property
filing
registration
fees
notice filing
By Zhang Zheng of Haiwen & Partners*
Following the promulgation of the Law of Property in 2007, the State Administration of Industry and Commerce (SAIC, and its counterparts at various places and levels referred to as AIC) publicized the Methods for Registration of Charges of Personal Properties (New Methods) on October 17 2007. The New Methods replace the Administrative Methods for Registration of Charged Properties by Enterprises (Old Methods) promulgated on January 23 2002, and take effect on the date of its publication.
LEGAL EFFECTS OF FILING
The New Methods explicitly declare that a charge without filing with the authority "shall not be cited against a bona fide third party". This declaration follows suit of relevant provisions of the Law of Property, which, with respect to the filing's effect on charge of personal properties, substitutes a "no filing, no perfection" approach for the "no filing, no attachment" approach under the...
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